Emirates President Tim Clark warned that the aviation industry is in “unknown territory” as US President Donald Trump’s radical tariffs and trade disputes place emphasis on global growth and threatens to reduce costs for airlines around the world.
“We are in a troubled time right now,” Clark told CNBC in an interview recorded on March 20th. It was before Washington announced its latest global taxation.
“That’s unknown as it includes measures of resetting to levels that the global economy probably hasn’t seen since the 2008-2009 financial crisis,” Clark points to increased pressure on airlines and ripple effects across the aviation supply chain.
After leading the Emirate for over 20 years, Clark has expanded his Dubai-based career to the world’s largest long-haul airline, leading to the recession following 9/11, the financial crisis of 2008 and the collapse of travel demand during the Covid-19 pandemic.
“It’s early days to see how the impact of resetting trade terms on discretionary demand for global economy and leisure travel will have,” he said.
“A business model like Emirates can ride this particular wave given the international scope of what it does and the strength of what it does,” he said.
Turbulence first
The Emirates bosses have sharpened the Trump administration’s motivations and framed trade escalations as a deliberate “trade reset” aimed at restructuring global commercial transactions.
China’s retaliatory tariffs on US aerospace giants like Boeing and GE Aerospace could indirectly narrow down the Emirates as they spread across the aircraft and parts supply chain. Emirates operates one of the world’s largest widebody fleets and is a major customer of Boeing and Airbus.
Despite the turbulence, Clark said he was cautiously optimistic about the demand that advance. He said long-distance travel remains “very strong” and has booked solidly in early 2026 from the rest of the year.
Impact on global aviation and airlines
The day before the trade tariffs were announced, International Air Transport Association chief Willie Walsh said the tax imposed by Washington is unlikely to be a revival after 19 post-19 of air travel demand.
“An additional uncertainty that we would never be welcomed with, but we were able to manage at all times,” Walsh said in an interview cited by Reuters. Meanwhile, industry analysts are cutting their travel demand outlook for 2025.
Other aviation industry figures have been more pessimistic than Walsh since the latest US obligations imposed.
Duck Hardwick, Vice President of International Affairs at the Aerospace Industry Association, told CNBC that the new tariff system “certainly makes things more expensive for the industry.” AIA represents Boeing, GE Aerospace, Airbus, and dozens of other aerospace and defense companies.
New trade rules imposed by Trump have seen airline shares fall double digits as airlines pay more for jets and equipment that are essential to their operations.
Many essential parts, such as jet engines, are made up of components from around the world. For example, the engines used in the Boeing 737 Max and Airbus A320 are produced by a joint venture of GE Aerospace and French aviation manufacturer Safran.
– Leslie Joseph contributed to this report
